Grow Your Practice

A financial audit is an evaluation of sorts of financial records, procedures, and processes to ensure accuracy, compliance with regulations, and overall financial health. This process is typically conducted by an external auditor, but you can also perform an internal audit to evaluate the effectiveness and efficiency of your dental practice’s internal controls, risk management processes, and structure.  Why Dental Practices Perform Internal Audits Internal audits help dental practices identify weaknesses in their systems, processes, and controls, and provide recommendations for improvements. There are several reasons why companies perform internal

Are you an associate dentist working alongside the owner or lead dentist of the practice? While being an associate dentist may still allow you to develop your clinical skills, gain valuable experience and provide you with a rewarding career, it’s only natural that you may be wondering if it’s time you owned your own practice. However, that’s a BIG next step so it’s crucial to consider certain factors that come with ownership.  Why Other Dental Practice Owners Incorporate Why do dentists incorporate? Various factors come into play here, but incorporating

Maximizing retirement savings is crucial for dentists to ensure financial security in their later years. By saving as much as possible, dentists can better prepare for unexpected medical costs that may arise, protect themselves against economic downturns, support their legacy goals, and comfortably support themselves through their retirement years. One of the best ways dentists can save for retirement and reach their goals is with an individual pension plan (IPP).   What is an IPP?  An IPP is a type of retirement savings plan designed primarily for business owners, incorporated professionals,

Dental practice valuation is the process of determining the worth of your dental practice. The valuation takes into account various factors such as your revenue, patient base, equipment and assets, location and overall profitability. It’s essential to understand the true value of your practice before selling or acquiring a new one so you can make a well-informed decision about future plans, negotiate fair prices during acquisition, and ensure you’re getting a fair ROI. A professional dental accountant will play a vital role in helping you determine an accurate valuation of your

As a dentist, it is crucial to have a clear understanding of your practice’s finances to ensure its utmost success. A key aspect of successful financial management is expense tracking – by keeping a close eye on your expenses, you can easily identify areas where costs can be cut or revenue be increased. This can help you make informed decisions about the future of your dental practice and ensure that you are operating as efficiently as possible. Expense Tracking is Essential For Many Reasons Comprehensive management of your finances can

Canada’s 2024 Budget introduced a series of proposals that could significantly impact dentists and dental practice owners. While these are just proposals right now, they offer a glimpse into potential changes in tax policies, and dentists and dental practice owners may benefit from reassessing and adjusting their personal and business financial strategies. Lifetime Capital Gains Exemption (LCGE) The budget proposes an increase to the Lifetime Capital Gains Exemption (LCGE) by 25%, raising the limit to $1.25 million for sales occurring on or after June 25, 2024. This could be beneficial

Managing debt effectively is crucial for a dentist’s personal financial health and the longevity of a dental practice. The costs involved in establishing and operating a dental practice can be significant, so understanding debt management is essential.  Dental Practice Debt Dental practice debt typically arises from several sources, including initial investments in equipment and office space, as well as ongoing costs for staff, supplies, and utilities. Additionally, many dentists begin their careers with significant educational debt. Even over time, growing a practice may require additional financing for new locations or

In April, the federal government presented Budget 2024. One of the proposals in that budget was to increase the lifetime capital gains exemption limit, raising it to $1.25 million as of June 25, 2024. Currently, the maximum for this exemption is $1,016,836. It was also proposed that the lifetime capital gains exemption would be indexed to inflation thereafter. Taxes on Capital Gains Capital gains are the profits you achieve when you sell an asset for a higher price than your purchase cost. These gains are ‘recognized’ only when you sell

In the new proposed Budget 2024, the federal government has suggested a change to the Income Tax Act, set to take effect on June 25, 2024. This amendment will increase the inclusion rate for capital gains if it’s passed.  For corporations and trusts, the inclusion rate on all capital gains will rise from one-half to two-thirds. For individuals, the inclusion rate will also increase to two-thirds, but only for annual capital gains exceeding $250,000; gains up to this threshold will continue to be taxed at the current rate of one-half.

Dentists face unique financial challenges and risks in managing their practices. From fluctuating patient demand to regulatory changes and economic uncertainties, navigating the financial landscape requires strategic planning and risk management. Carefully and comprehensively preparing for and addressing key financial risks is essential. While risk is to some degree unavoidable, there are strategies to mitigate them effectively. Financial Risks Faced by Dentists and Strategies to Mitigate Them Self-employed dentists and dental practice owners face unique financial risks. With certain precautions and steps, the effects and damages of each of these